Budget Expectations: Mr Mihir Vora, CIO, TRUST Mutual Fund

26 Jan 2024 , 01:45 PM

Continue fiscal consolidation, Deficit target of 5.3-5.5% against FY24 at 5.9%

FY24 saw muted revenue expenditure growth of about 3% while capital expenditure remained the focus, with 30% growth so far. Revenue expenditure growth for FY25 may continue to remain low.

FY25 may focus on support to rural consumption as it has been a weak spot, Focus on rural may be at some cost to capital expenditure.

Direct tax collection growth may be lower compared to FY 24 which will see over 20% growth. 

Indirect tax collections to remain healthy

FY 24 will see Tax/ GDP at the highest levels since 2008. This will continue to improve with increasing compliance 

PLI schemes to continue and more sectors are likely to be covered under the scheme. 

Defense spending growth may be single-digit, but focus on private sector manufacturing and local manufacturing to continue

Railways capex growth to continue

Divestment targets may be higher for FY25 as stockmarkets are near all-time high, and there is appetite for public stocks. 

For the first time, personal income tax collections are higher than corporate tax collections. We may see some lowering in personal income tax rates and slabs under the new regime.